Some key general retail industry players for this current fiscal year are Home Depot, Lowe’s, Wal-Mart, Target Corp., Sears Holdings Corp., and in the department stores, Macy’s. In order of revenues from largest to smallest for this fiscal year ending in January 2012, Wal-Mart is currently leading this quarter with $ 109,366 millions; Home Depot follows with $20,232 millions. In addition to this two, Target Corp. follows with $16,240 millions, and then comes Lowe’s with $14,543 million and finally Macy’s with current revenues of $ 5,939 million. Wal-Mart raised its revenue by this quarter of this year compared to the revenues of the same quarter last year, from $103, 016 millions to $ 109,366 millions. Target also raised its revenues this quarter of this year, from $ 15,532 millions to $ 16, 240 millions, as well as Home Depot from $ 19, 410 to $ 20,232 millions. This rises in revenue, in this company’s, are due to the fact that people are looking for low prices in these big box discount stores that offer a great variety of products, such as Wal-Mart and Target, at lower prices. In terms of Home Depot, we can see how the improvement in the housing market is changing and gradually augmenting the revenues of this huge home-improvement company.
In 2010, Wal-Mart reported a 3.7 % profit ratio return from revenues, which gave them a net income of $15,535 millions. Target Corp., also in 2010, reported a 4.3% return on revenues, which gave them a net income of $2,920 millions that year. The reason why I mention these 2 major companies is because they had the most significant change in revenues from 2010 to 2011 and to the present fiscal year that ends in January. This means that if the profit returns percentage happens to stay the same, as revenue increases, the higher their net income will be. For example, if Wal-Mart were to report a 3.7% profit ratio in 2011, the net income would raise 73 million than that of 2010. In addition to that, if the revenues of these companies continue to grow as they are doing, their net income would also grow significantly, making these companies much more solid in this upcoming fiscal year. Finally, if the profit percentage ratio does increase, net income increases, meaning that the companies are doing very well.
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Just so you guys know, right now we are in the second quarter of fiscal year 2012 that ends in January. If I mentioned "this quarter" in the blog post, I was referring to the second quarter of the 2012 fiscal year.
ReplyDeleteI couldn't agree more with most of this post. I think that the less expensive retailers are going to be very strong this holiday season becuase people are saving as much money as they can. This is especially true because of raising cost of living, particularly gasoline prices and food prices.
ReplyDeleteThis means that the consumer is going to have less money to spend on "luxuries".
I also think companies that arre very diverse are going to be very successful; Such as, wal-mart and target.
Nice post Carlos!
I agree as well with Carlos. It is so true that people, especially in these hard times, are looking for discounts and retailers that can provide store rewards and low prices. Along with this, retailers that have a variety of products will attract a larger audience as well. Here, many different people with different tastes can save on purchases which will lead them to return to the stores as well.
ReplyDeleteStores that follow on this path will most definitely end up doing better because they are bringing customers into their stores and proving what people are looking for.
I am agree for all the comment all people who are comment in the blog. Every people have different likes purchase the merchandise and the have different tastes or thinks etc. This is true because the raising for the living of coast price of meal. I think its not expensive store or shope or hotel there are less expensive for rich persons.
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